India's factory output in August highest in nine months
- Author: Wendy Palmer Oct 13, 2017,
Oct 13, 2017, 0:37
India's factory output saw smart recovery growing at 4.3% in August against a downward revised 0.9% growth a month ago, as manufacturing sector expanded at 3.1% a month after implementation of goods and services tax (GST).
Mumbai: The factory output growth in August surged to 9-month high of 4.2%, indicating an acceleration of industrial activities after the initial setback due to GST-related destocking much to the delight of the government which is facing criticism over poor handling of the economy.
Looking at the growth of industries in manufacturing sector, at least 10 out of the 23 industry groups in the manufacturing sector have shown an uptick in growth for August.
Meanwhile, the index of industrial production (IIP) increased to 4.3 per cent in August against July's figure of 1.2 per cent.
Retail inflation came in at 3.28 per cent in September, unchanged from August, despite softening of vegetable and cereal prices, according to government data.
The Central Statistics Office (CSO) which released the data on Thursday also revised the July IIP from 1.2 percent to 0.94 percent. On the other hand, the inflation print rose in the fuel and light category to 5.56 per cent.
IIP growth during April-August period of this fiscal stood at 2.2 per cent, down from 5.9 per cent in the same period in 2016-17.
The output of the mining and electricity sectors grew at 9.4 per cent and 8.3 per cent as compared to August 2016.
The annual consumer price inflation remained steady in September from the previous month, but hopes of a rate cut by the Reserve Bank of India remain bleak as it expects higher inflation in coming months.